Many consumers in their 60s still hope to expand their horizons.
U.S. consumers in that age group with significant nest eggs say they expect to spend an average of about $245,000 on a second home in retirement, $62,000 on international travel in retirement, and $60,000 on domestic travel in retirement, according to researchers at Sun Life Financial U.S., Wellesley Hills, Mass., an arm of Sun Life Financial Inc., Toronto.
Researchers included 200 consumers ages 55 to 59; 200 consumers ages 60 to 69; 201 consumers ages 70 to 89; and 40 consumers ages 80 to 89.
All participants reported having at least $250,000 in invested assets, and all were working with financial professionals to make investment decisions.
Participants said they plan to spend an average of $611,000 on activities and extras in retirement.
Participants said they expect to spend $84,000 on charitable donations, $69,000 on home improvements, $59,000 on luxury items such as cars, and $17,000 on starting new businesses.
The answers of the participants suggest today’s pre-retirees may need to anticipate spending a higher percentage of their current income each year than they now think they will, according to Sun Life executives.